The cost of higher education can scare off many of us. There is no denying the fact that college costs a significant amount and unless one has saved up for it for a long time, things can get difficult. The tuition, the cost of books, and other related expenses can all amount to quite a significant amount. Those who are able to enjoy a grant or a scholarship are few, while the rest often turn towards student loans.
Student loans need to be paid back, unlike scholarships and grants, but they do have their fair share of advantages too.
Here are some of these advantages of student loans:
- Low interest rate - Student loans are offered at a very low interest rate compared to all other loans. The student loans offered by the federal government offer the lowest interest rate in the loan market. Even the loans that private banks make available for students are comparatively at a lowered rate of interest as compared to other loans offered by them. Students who are unable to benefit from scholarships and grants can take the student loans and fund their education without having to pay high rate of interest.
- Longer repayment time – Another important advantage of student loans is that the repayment span can be spread over a larger number of years. The private student loans can be spread over 20 years and also further extended by 5 more years. In the case of the federal student loan this period can be extended even more. With such a long period to pay back the loan, there is not much pressure on the borrower which is why these loans work for most students.
- Grace period – The most unique advantage that the student loan offers is the grace period. The repayment of the student loan does not begin till about 6 months after graduation. This means that there is time after graduation to find a job before starting repaying the loan. It is important to keep in mind that this grace period is only offered by the banks to students who seek the loan. In case it is the parents who are taking the loan the repayment begins immediately.
These advantages of student loans are the reason why many students are today able to pursue a college education despite not having personal funds for them. The state ensures that student loans are made as easy as possible so as to encourage more and more students to continue their education. Even those students who may suffer from a poor credit history will find that they will be able to procure these loans and change their lives around. There is no denying the fact that with higher education students are able to find better jobs, better pay and consequently a better life style.